There’s Still Time to Get Up to a $500 Tax Credit!

UnknownHomeowners still have time this year to rack up a $200-$500 federal tax credit on new windows and doors and other home improvements, according to consumer website HouseLogic. The key is ensuring you install products that fit the Feds’ exacting standards.

 

Replace Your Front Door

Replacing your front door can pay for itself by increasing your home’s value, according to Remodeling magazine’s annual Cost vs. Value Report.

What’s more, if you choose an energy-efficient exterior door, you may qualify for a tax credit that can save you up to $500 as well as trim up to 10% off your energy bills. (With utility bills averaging $2,200 annually, that’s a savings of as much as $220.)

But how do you know which door is right for you? Make your decision by comparing the three main materials available for exterior doors: steel, fiberglass and wood. Read more at http://www.houselogic.com/home-advice/windows-doors/exterior-door-installation-options/.

 

Insulate Your Home

Whether it’s summer heat or winter cold, insulation makes your house a lot more livable. If you add insulation before the end of the year, you’ll be eligible to collect a $500 energy tax credit.

Tax credit limits and deadlines:

  • 10% of expenditures, up to $500 for the year, for all energy improvements combined. It’s a lifetime credit.
  • Insulation must have been installed by Dec. 31, 2013.
  • Save receipts and labels for Uncle Sam.

Adding insulation is a relatively affordable home improvement project, and the savings can be felt almost immediately. Some DIYers can even tackle the project themselves over a weekend. The Energy Star site is your safest bet for information on how to get the credit. Energy Star has been pretty flexible on what it allows for this credit. Products that reduce air leaks also qualify. Installation isn’t covered, though. Don’t rely solely on contractors who may not know the details or who promise their products will get the credit in order to make a sale. Read more: http://www.houselogic.com/home-advice/tax-credits/tax-credits-adding-or-replacing-insulation/#ixzz2jmkG2rlA

 

Install a More Efficient Water Heater

Doing the dishes, taking a shower, or cleaning your clothes — you need hot water and lots of it. The government understood, and offers an energy tax credit for adding a more efficient hot water heater to your home.

Tax credit limits and deadlines:

  • You must have installed the water heater by Dec. 31, 2013.
  • 10% of expenditures, up to $300, for a non-solar water heater, including installation. (You can spend a lifetime total of 10% of expenditures up to $500 for all approved energy purchases combined. If you already claimed energy tax credits up to this limit, you’re done.)
  • Save receipts and labels for Uncle Sam.

There are many different kinds of hot water heaters, so the Energy Star site is a good bet for info. It’s very specific on what is and is not credit-eligible. For instance, it must have a thermal efficiency of at least 90%. Read more at http://www.houselogic.com/home-advice/tax-credits/tax-credits-non-solar-water-heaters/#ixzz2jmlEWAKH

Get That New Roof You’ve Been Needing
If you added a heat-efficient metal or asphalt roof to your house, you’ll be better equipped to fight August’s heat. And since the government extended the energy tax credit for existing homes, you may be able to claim the $500 energy tax credit by filing IRS Form 5695 with your return.Tax credit limits and deadlines:

  • 10% of expenditures, up to a lifetime $500, for all energy improvements combined.
  • A relevant roof must have been installed by Dec. 31, 2013.
  • Save receipts and labels.
  • For roofs, installation isn’t covered.

See Energy Star for guidelines on what exactly is covered. It’s your safest bet for information on how to get the credit. Be warned that not all roofs, not even all roofs with the Energy Star seal, will qualify. Only specially manufactured roofs, as listed on the Energy Star site, are eligible. Read more at http://www.houselogic.com/home-advice/tax-credits/tax-credits-replacing-your-roof/#ixzz2jmlYPvpV

 

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